Why property is the best investment

LESLEY Ratz is a self-employed Lorraine Lea Linen area manager from Brisbane, who has been holding linen parties and managing a team of independent consultants for the past 13 years.

She "lives for today" with the philosophy, "life's too short to miss out on anything", but invests for the future with a property portfolio.

Q: What was your first investment and how did it go?

A: To keep our first property purchase, a two-bedroom villa, we kept it as an investment and rented it out, while we waited for the market to recover. We had bought the property at a 'high', and then the bottom fell out of the property market. We used the equity in the villa to borrow against and buy our family home. This next house was a 'mortgagee in possession' that, cosmetically, was a disaster. However, with a lot of work and not much money invested, it became a beautiful home after a few cosmetic renovations and installation of a swimming pool.

A: Property works for me, as it's tangible and I can see it. Since our first two properties, we have now purchased another two investment properties - one five years ago and another three years ago.

Q: What is the best investment advice you have received and who was it from?

A: When you look after the pounds, the pennies look after themselves. This was the advice given to me by my dad, which his father told him.

Q: How do you approach investment risk?

A: I don't.

Q: What has been your best-performing investment?

A: The 'mortgagee in possession' property we purchased. It was given a facelift and made us over $200,000 in two years. We used these funds to build our dream family home.

Q: And the worst?

A: Buying our villa in a property market boom and selling it before the next one. If only we waited another three months before we sold this property its value would have increased by over $100,000.

Q: Where do you get your information about investing?

A: I'm always asking questions to gather information about real estate and the property market. Saying that, I only listen to what I want to hear.

Q: How would you invest $25,000 if you were given it tomorrow?

A: I think because I'm self employed, I would put that into superannuation.

Q: How do you feel about managed funds?

A: I don't know enough about them to have an opinion.

Q: How do you feel about investing overseas?

A: This is something I would never consider, because I don't know enough about it.

Q: Do you use the services of a financial planner?

A: No, but I should.

Q: How do you feel about life and disability insurance?

A: It's like all insurance; I hate paying it but wouldn't be without it. You never know what's around the corner, so I think it is necessary.

Q: Do you usually make extra mortgage repayments

A: Our mortgage (around $140,000) has always been our number one priority to pay off. We paid double repayments wherever possible to reduce it as quickly as possible. Last year, we had a year of making do, with the No. 1 goal of paying off our mortgage. Every cent we had that wasn't allocated to bills went to paying off that loan.

I am now proud to say, it was paid out.

Q: What is your strategy with your credit card?

A: I use our credit card for all expenses, and then sweep it monthly. This helped to offset our own mortgage, and is now helping one of our investment loans. I haven't paid credit card interest in over 10 years.

Q: Do you have a personal finance budget and do you stick to it?

A: Goodness no! I don't think I could stick to any budget. Life is way too short to miss out on something you truly want. If I really want something, I book extra linen parties so that I am able to afford it.

Q: What's the most extravagant purchase you have made?

A: Our recent trip to New York for a white Christmas, New Year's Eve in Las Vegas and a week of fun in California.